The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Equity market round-up: The month in numbers

2,000,000,000 the estimated annual dollar cost to fund managers tracking the S&P500 and Russell 2000 indices because of index changes, according to an academic study by professor Vijay Singal, of Virginia Tech, Honhui Chen, assistant professor at the University of Central Florida, and professor Gregory Noronha, of the University of Washington at Tacoma.

The losses to fund managers occur as existing stocks suffer declines and stocks joining an index rise around announcements. It means that an index fund has to pay more for the stocks it adds and that it earns less for the stocks it has to sell.

The losses are an unexpected consequence of the evaluation of index fund managers on the basis of tracking error. Minimization of tracking error, coupled with the predictability and/or pre-announcement of index changes, creates the opportunity for a wealth transfer from index fund investors to arbitrageurs.

11,800,000,000 the volume in dollars of Latin American equity capital markets volume so far in 2006. The amount raised so far this year is 194% greater than over the same period in 2005 and is already the highest yearly Latin American ECM deal volume on record, according to Dealogic. Brazilian issuers make up 75% of the deal volume.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree